As total assets for the hedge fund industry grew in 2017, fund liquidations declined sharply. For the second consecutive quarter, hedge fund launches exceeded liquidations in Q4 2017.

Average hedge fund management and performance fees are at their lowest point ever. Over the previous quarter, the average management fees declined -1bp to 1.44% while the average performance fee fell -10bp to 17%. HFR estimates that roughly 30% of all hedge funds currently charge more than the old 2/20 industry standard.

Source: HFR Market Microstructure Report